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Income Tax Act 2007

Timing and quantifying rules - Matching rules: revenue account property, prepayments, and deferred payments

EA 5: Income from disposal of original shares under share-lending arrangements

You could also call this:

“Selling shares you borrowed: rules for your income”

When you are a share user under a share-lending arrangement, this law applies to you. You must have sold an original share to someone who is not the share supplier or related to them, and received income from it. You must also have a deduction for buying an identical share in the next income year.

The income you got from selling the share can be moved to the next income year. You can find more information about this law in the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1429982.

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Part E Timing and quantifying rules
Matching rules: revenue account property, prepayments, and deferred payments

EA 5Income from disposal of original shares under share-lending arrangements

  1. This section applies when a person—

  2. is a share user under a share-lending arrangement; and
    1. derives an amount of income in an income year from the disposal of an original share under the share-lending arrangement to a person other than the share supplier or a person associated with the share supplier; and
      1. has a deduction in the following income year (the later income year) for expenditure incurred on acquiring an identical share.

        1. The amount of income derived by the person may be allocated to the later income year.

        Notes
        • Section EA 5: inserted, on , by section 46(1) (and see section 46(2) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).